There is an overwhelming saying in the Silicon Valley, whereby the production of ‘hard devices’ is expensive and long lasting. It is true, even if there is a brilliant business in IT, such as “Invidia”, of which the market value has increased to $ 3 billion thanks to the extraordinary superiority in the challenges of the most advanced devices today, which is the challenge of producing advanced artificial intelligence. To my knowledge, Wall Street does not have this old saying. Or any sayings, when it comes to changing the world using technology, with the exception of maybe a few things: “good growth”, and “These geniuses in the West find ways to maintain good times in the future and quickly.” Therefore, when “Invidia” confirmed on Wednesday, the rumors that his new SIM “Blackwell” had a few obstacles in the production negatively interacted with traders, which led to the shares dropping to 8.4% to the trading hours. Similarly, the thing that influenced ‘Invidia’ is the growth of its turnover by 122% year -on -year (which does not look enough) and the estimates of the company, although exceeding expectations, were not good enough. Honestly, it seems that CEO Jinsen Huang did not put enough effort. The price of exaggeration in expectations has become a little ridiculous. The analysts of ‘Bloomberg Intelligence’ were right when they said that ‘Invidia’ ‘high and sustainable expectations’ are facing. The delay in the launch of the “Blackwell” chip is a temporary obstacle, which will not affect the company’s big profit margins, thanks to the big question that will last several months. Technology companies are still striving to obtain ‘Invidia’ chips, and buyer on ‘Black Friday’ is chasing to buy a new TV. Launching Blackwell is a little late because the scheduled schedule is not a problem. Gil Luria, of D. Any. Davidson: “They will buy everything that Entefia sells.” Huang told the investors, and he talked about it in an exclusive interview with Ed Ludwell of “Bloomberg”, that he has advance orders about Blackwell flowing from everywhere. The problem of productivity, which is now solved, is related to the manufacturing process instead of the same segment. This is a big difference; In full, think of the starting point in the design. Investors are really worried, they have to look at the distant future. They have to wonder what will happen as the largest clients of ‘anfesty’ (such as ‘Amazon.com’ and ‘Google’ of ‘alphabet’ and a small number of other) to their own needs of devices can better meet their own ingredients instead of ‘Invantia’ products. Huang said these companies now represent 45% of the ‘Envenia’ customer base. This is a weak point no matter how it is suggested. Shares may also want to ask about the existential problem associated with what can happen if the most important artificial intelligence initiatives are not achieved on the desired investment. Mark Zuckerberg has acknowledged that ‘Mita platforms’ tend to be excessive investment when it comes to artificial intelligence. There is a scenario in which you can find that these businesses and other giant businesses, which are much more powerful than you need from servers, that there is no justification to do many matters with ‘Invidia’. (It reminds me of a bit of Amazon during the pandemic, when she bought at any cost of any storage space she could get. This excessive spending cost the responsible executive director to lose his job and close the business and constantly cancel the building projects). When Huang was under pressure on anxiety on Wednesday by the return on investment by analysts in the profit call, he did not have much to say. But let’s be realistic, it’s not 2024 problems. It is likely that these are not 2025 problems either. Even though artificial intelligence and its field are greatly strengthened, it will still be spent billions of dollars on “Inviteia” chips before we know the result. Until then, investors should not exaggerate their response to the inevitable potholes on the road. The production of “hardware is difficult”; Although Wall Street’s satisfaction can be more difficult.
Dave Lee: ‘Inviteia’ investors must realize that the manufacture of devices is difficult
